Cargojet has sold its 25 percent stake in Miami-based 21 Air, signalling a strategic shift toward the areas where the Canadian cargo airline sees its strongest long-term advantage.
The investment in 21 Air was originally made in August 2021 through Avia Investments LLC, a joint venture with logistics entrepreneur Jim Crane, who is also chairman and owner of 21 Air. The divestment is the first major strategic move under Pauline Dhillon, who took over as chief executive at the start of 2026 following founder Ajay Virmani.
Dhillon said the decision would sharpen Cargojet’s focus on its domestic network, ACMI and charter operations, while allowing the company to allocate capital to areas more closely aligned with its core strengths.
The move comes against a mixed financial backdrop. In the fourth quarter of 2025, revenue slipped 2.9 percent year on year to CAD$284.7 million, weighed down by economic pressures and disruption in international ACMI and charter markets. Domestic overnight services, however, grew nearly 17 percent, supported by strong Canadian e-commerce demand. Net income fell 63 percent to CAD$26.6 million because of CAD$37.7 million in additional finance costs, while adjusted EBITDA rose 3.6 percent to CAD$95.0 million. Cargojet currently operates a fleet of 41 cargo aircraft.
Labour dynamics may also have influenced the sale. In April 2026, Jim Crane cited expiring pilot contracts as an important factor. The Air Line Pilots Association, which represents pilots at both Cargojet and 21 Air, has previously criticised the cross-border arrangement, arguing that aircraft loans to 21 Air may circumvent US restrictions on foreign carriers operating domestic routes. Cargojet’s pilot contracts expire in June 2026, and divesting the stake may reduce union leverage in negotiations.
Despite ending the ownership link, the commercial relationship will continue. Fleet data from April 2026 show that 21 Air still leases several Boeing 757 and 767 aircraft from Cargojet, and that arrangement is expected to remain in place.
